Southeast Asia Information Port News (www.dnyxxg.com) – On the 28th local time, the German Federal Ministry for Economic Affairs and Energy released its "2026 Economic Report" in Berlin. The report projects Germany's economic growth rate to be 1.0% in 2026, lower than the 1.3% forecast last autumn.
In 2025, the German economy barely avoided a third consecutive year of recession with a meager 0.2% growth, significantly lagging behind other major industrialized nations. The government stated that one reason for lowering the 2026 growth forecast was the weaker-than-expected economic recovery in the second half of 2025. Furthermore, the billions of euros invested in infrastructure modernization, climate protection, and strengthening the Federal Armed Forces also had a lower-than-expected stimulative effect.
Analysts believe that the export momentum, which had long supported the German economy, has weakened significantly. The government hopes to promote greater economic diversification through new trade agreements with Mercosur and India. Minister of Economic Affairs and Energy Reischer stated that Germany cannot control external economic conditions, but it can mitigate the impact of external shocks by strengthening its own economic resilience.
Economic associations generally believe that Germany's economic weakness stems primarily from its structural problems, including high energy prices, heavy tax burdens, and cumbersome administrative procedures. Although the government has introduced some countermeasures, the business community believes the力度 (intensity/strength) is still insufficient and is calling for larger-scale burden-reduction policies. (End)
